Nicos Polymers CEO comments on restructuring

Tue, 12/07/2010 - 14:08 | Anonymous

Nicos Polymers CEO comments on restructuring

Nicos Polymer Group has emerged from bankruptcy in a strong position, said the company's CEO in an interview with Plastics Recycling Update. In October, the plastics recycler filed under Chapter 11 to stop foreclosure by its creditor, Fifth Street Finance Corp., to which it owed about $20 million. The case was sent to mediation, which was recently resolved.

Nicos CEO Kevin Cronin said that, as a result of the mediation, a new parent company has been formed to help the company restructure its debt, which has been reduced to about half of the original total. "The processing operations here have continued unabated throughout the entire bankruptcy," said Cronin. "We continue to operate on a day-to-day basis as unperturbed as possible, given the circumstances. We haven't laid anyone off; we're still having the same number of shifts. Effectively, the operation hasn't been interrupted in any significant way."

What will change is the ownership of the company, he said, with Fifth Street Finance taking a majority stake in the new parent company. Additionally, a three man board will be set up to oversee it. Two of its members will be appointed by Fifth Street Finance, and one will be appointed by Crownbrook Debco LLC, the prior parent company of Nicos. Cronin added that restructuring has been instrumental in improving Nicos’ financial health.

"We have a much stronger balance sheet, as well as a majority owner who is significantly interested in seeing the company grow," said Cronin of the restructuring. "So, it will be a well-capitalized company as well, with lots of resources at our discretion that could be utilized for continuing to grow the business."